90 Banks on FDIC's problem watch list

maybe someone on this site can backwards engineer it using FDIC methodology?

http://www.thought-criminal.org/article/node/1655

"Texas Ratio: Cassidy and his colleagues have developed an early-warning system for spotting future trouble at banks called the Texas Ratio. The ratio is calculated by dividing a bank’s non-performing loans, including those 90 days delinquent, by the company’s tangible equity capital plus money set aside for future loan losses. The number basically measures credit problems as a percentage of the capital a lender has available to deal with them."
 
The article you listed specifically mentions IMB (done), UCBH, STSA, CNB and EWBC.

Quote from jasonjm:

maybe someone on this site can backwards engineer it using FDIC methodology?

http://www.thought-criminal.org/article/node/1655

"Texas Ratio: Cassidy and his colleagues have developed an early-warning system for spotting future trouble at banks called the Texas Ratio. The ratio is calculated by dividing a bank’s non-performing loans, including those 90 days delinquent, by the company’s tangible equity capital plus money set aside for future loan losses. The number basically measures credit problems as a percentage of the capital a lender has available to deal with them."
More...
 
Quote from m22au:

The article you listed specifically mentions IMB (done), UCBH, STSA, CNB and EWBC.
More...


wow the shorts have already dug in deep to those 4. EWBC looks the least shorted of the 4, but still 20% of its 52 week high

Ouch.
 
For what it's worth, the charts of DSL, FED and BKUNA suggest that these three are very close to failure. BKUNA recently announced a stock offering that sent the stock price below 1.
 
Hundreds of small irrelevant banks went under in the S&L crisis. This is part of the clean-up. However, it will get critical if big boys like C, WB, JPM, BAC go under.
 
"Texas Ratio: Cassidy and his colleagues have developed an early-warning system for spotting future trouble at banks called the Texas Ratio. The ratio is calculated by dividing a bank’s non-performing loans, including those 90 days delinquent, by the company’s tangible equity capital plus money set aside for future loan losses. The number basically measures credit problems as a percentage of the capital a lender has available to deal with them."

R = ratio
NPL= Non performing loans including 90 days delinquent
TEC = tangible equity capital
FLLC = Future loan loss capital

R = NPL/(TEC + FLLC)

Now, where to easily find the data to plug into equation?
 
It will be fun when Wikileaks discloses the Swiss bank numbered a/c details of people involved in tax evasion and money laundering.
 
Quote from makloda:

Hundreds of small irrelevant banks went under in the S&L crisis. This is part of the clean-up. However, it will get critical if big boys like C, WB, JPM, BAC go under.
More...


This text book Economics in any B school. Consolidation every 10 or so years. big deal. Just learn to use it in you advantage. Next time all TV channels talk about CRISIS go buy some puts and save you 401K.
Get rich next time.
 
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